Gold recovered some of its losses on Friday after tumbling from fresh record above $2,800 an ounce on the day before.
In morning trade gold for delivery in December exchanged hands for $2,756.90 showing little reaction to crucial US jobs data that came in well below expectations, bolstering the case for further rate cuts.Steeper rate cuts would bode well for the non-interest-bearing bullion. Earlier this week, fresh data showed overall inflation in the US came in at 2.1%, the lowest since early 2021 and just above the central bank’s 2% goal.
On Thursday the precious metal suffered its biggest one-day drop since July to settle at $2,749 an ounce but remains on course for a weekly gain.
Gold is up more than a third this year, buoyed by global central bank buying and haven demand amid conflicts in the Middle East and Ukraine.
The recent advance had taken the metal’s 14-day relative-strength index above 70, a level that can suggest the market has become overbought, according to Bloomberg analysis.
The tight US presidential race is also creating uncertainty that’s underscoring bullion’s role as a place of safety for investors. The Nov. 5 election may open gold up to a correction of more than $100 an ounce, said Ole Hansen, head of commodity strategy at Saxo Bank A/S.
